Explanatory Memorandum to COM(2024)501 - - Main contents
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This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2024)501 - . |
|---|---|
| source | COM(2024)501 |
| date | 31-10-2024 |
1. Subject matter of the proposal
This proposal is to set out the position to be taken on the EU’s behalf in the Association Council of the Euro-Mediterranean Agreement establishing an association between the EU and Lebanon, on the amendment of Protocol 4 of that Agreement.
2. CONTEXT OF THE PROPOSAL
2.1. The Euro-Mediterranean Agreement establishing an Association between the European Community and its Member States, of the one part, and the Republic of Lebanon, of the other part
The Euro-Mediterranean Agreement establishing an association between the EU and Lebanon0 (the Agreement) aims to set out the conditions for the gradual liberalisation of trade in goods, services and capital. The Agreement entered into force on 1 April 2006.
2.2. The Association Council
The Association Council, set up in line with Article 74(1) of the Agreement, may decide to amend Protocol 4 (notably Article 38). The Association Council draws up its decisions and recommendations by agreement between the two parties (i.e. the EU and Lebanon).
2.3. The envisaged act of the Association Council
At its next meeting or by exchange of letters, the Association Council is to adopt a decision on the amendment of Protocol 4 (the envisaged act).
The purpose of the envisaged act is to amend Protocol 4 by replacing it with a new protocol to include a dynamic reference to the Regional Convention on pan-Euro-Mediterranean preferential rules of origin, so that it always refers to the latest version of the Convention in force.
The envisaged act will be binding on the parties, in line with Article 76, paragraph 2 of the Agreement.
3. Position to be taken on the EU’s behalf
The Regional Convention on pan-Euro-Mediterranean preferential rules of origin (the Convention) lays down provisions on the origin of goods traded under relevant agreements concluded between the contracting parties. The EU and Lebanon signed the Convention on 15 June 2011 and on 22 October 2014 respectively.
The EU and Lebanon deposited their instruments of acceptance with the depositary of the Convention on 26 March 2012 and 25 October 2017 respectively. As a consequence, under its Article 10, the Convention entered into force for the EU and Lebanon on 1 May 2012 and on 1 December 2017 respectively.
The Convention was amended by Decision No 1/2023 of the Joint Committee of the Regional Convention on pan-Euro-Mediterranean Preferential Rules of Origin of 7 December 2023.
Article 6 of the Convention stipulates that each contracting party must take appropriate measures to ensure that the Convention is effectively applied. To that effect, the Association Council established by the Agreement should adopt a decision introducing the rules of the Convention under Protocol 4. This is done by introducing in the amended Protocol a reference to the Convention that will render it applicable.
The position to be taken by the EU in the Association Council should be established by the Council.
The proposed amendments are technical in nature and do not affect the substance of the protocol on rules of origin currently in effect. Therefore, they do not require an impact assessment.
4. Legal basis
4.1. Procedural legal basis
4.1.1. Principles
Article 218(9) of the Treaty on the Functioning of the European Union (TFEU) provides for decisions establishing ‘the positions to be adopted on the Union’s behalf in a body set up by an agreement, when that body is called upon to adopt acts having legal effects, with the exception of acts supplementing or amending the institutional framework of the agreement.’
The concept of ‘acts having legal effects’ includes acts that have legal effects because of the rules of international law governing the body in question. It also includes instruments that do not have a binding effect under international law, but that are ‘capable of decisively influencing the content of the legislation adopted by the EU legislature’0.
4.1.2. Application to the present case
The Association Council is a body set up by an agreement, namely the Euro-Mediterranean Agreement establishing an association between the European Community and its Member States, of the one part, and the Republic of Lebanon, of the other part.
The act that the Association Council is called on to adopt has legal effects. It will be binding under international law in accordance with Article 76, paragraph 2 of the Agreement.
The envisaged act does not supplement or amend the institutional framework of the Agreement.
Therefore, the procedural legal basis for the proposed decision is Article 218(9) TFEU.
4.2. Substantive legal basis
4.2.1. Principles
The substantive legal basis for a decision under Article 218(9) TFEU depends primarily on the objective and content of the envisaged act for which a position is taken on the EU’s behalf.
4.2.2. Application to the present case
The main objective and content of the envisaged act relate to the common commercial policy.
The substantive legal basis of the proposed decision is therefore Article 207 i, first subparagraph, TFEU.
4.3. Conclusion
The legal basis of the proposed decision should be Article 207 i, first subparagraph, in conjunction with Article 218(9) TFEU.
5. Publication of the envisaged act
As the act of the Association Council will amend the Agreement, it would be appropriate to publish it in the Official Journal of the European Union after it has been adopted.